The Securities and Exchange Commission (SEC) has formally acknowledged Canary Capital's 19b-4 filing for a Litecoin ETF, marking the first altcoin ETF application after Ethereum to receive such recognition.
This acknowledgment sets a definitive 240-day timeline for the SEC to either approve or reject the application, representing a major milestone in the ETF approval process. The news has already influenced LTC's market performance, triggering a 12% price increase following Nasdaq's initial form filing.
ETF analysts Eric Balchunas and James Seyffart previously identified Litecoin as a strong contender among altcoin ETFs, suggesting it held better approval prospects than competitors like Solana or XRP. Recent developments appear to support this assessment.
"It's the altcoin 19b-4 to be acknowledged; the rest were told to withdraw by Gensler's SEC," Balchunas noted on social media. He emphasized that this filing has made exceptional progress in meeting regulatory requirements.
The development gains additional weight as Grayscale, another prominent ETF issuer, submitted its own Litecoin ETF application last week. However, market observers caution that acknowledgment does not guarantee approval, particularly given the surge of altcoin ETF applications following Gary Gensler's resignation.
The SEC's decision on this application could serve as a benchmark for the broader altcoin ETF landscape, potentially indicating the commission's stance on future applications. As the regulatory body navigates these waters, the crypto community watches closely to see whether this marks the beginning of broader altcoin ETF approvals or remains an isolated case.